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Showing results for tags 'Correction of Plan Defects'.
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A Participant of a 401(k) plan has just brought the Plan Administrator's attention now after 8 years (completed an election form in 2008) that his/her deferral election has not been implemented. My question is; is there a statute of limitations since it has been 8 years. He's obviously seen his paycheck stub and has seen no deferrals being taken out. Not to mention the filing of his taxes and W-2 form for 8 years. The investments are semi-bundled with John Hancock so he would even has access to his account daily. I'm thinking there is not a statute since the IRS says to "correct the plan as if the error never occured", but really? This is nuts! If there isn't a statute of limitations, then at this point the only correction since this is going back to 2008 would be to use EPCRS "missed deferral opportunity" and file a VCP. Even though this is just one participant, it probably wouldn't fall under SCP. Around 53 participants, assets greater than $2 million and it's a safe harbor plan with Enhanced Match to boot. Thank you!